Section B Group 8 Oscar Bernaldez Pablo Franzini

Section B Group 8 Oscar Bernaldez / Pablo Franzini / Masa Kijima Alessandro Piloni / Nikolaos Platis / Iris Tang

Do you know PUMA?

Agenda n PUMA at a glance n History n Market Analysis n The Value Chain n SWOT n PUMA in Our Country n The Future

Glory, Collapse…and Rise n Founded in 1948 n Rapid Growth in 1970 s n Financial crisis in 1988 n Phase I : 1993 -1996 Restructuring Finance n Phase II : 1997 -2001 Repositioning Brand

Consolidated Group Profit 10 M€

Worldwide Brand Sales by Region Million €

Worldwide sales by segment Million €

Competitors High quality l Winning image l Form follows function l Brand for the family l Grow through distribution l Fitness and exercise l

Industry Analysis Entry/Exit Barrier Threat of Substitutes Bargaining Power of Suppliers Bargaining Power of Buyers Industry Competition

Industry Analysis Entry/Exit Barriers Threat of Substitutes Bargaining Power of Suppliers Bargaining Power of Buyers Industry Competition LOW(Entry)　: For Apparel Market HIGH : For Footwear Market HIGH : Brand recognition and 　 Customer Loyalty LOW (Exit) : Outsourcing in Manufacture Non-durable Products Seasonable Consumption

Industry Analysis Entry/Exit Barrier Threat of Substitutes Bargaining Power of Suppliers SMALL: Daily consumption Lifestyle dress Bargaining Power of Buyers Industry Competition Other consumption

Industry Analysis Entry/Exit Barrier Threat of Substitutes LOW: Low Cost Labors Over supply of raw material Bargaining Power Manufacture sites of Suppliers Bargaining Power of Buyers Industry Competition HIGH: Designer Fee

Industry Analysis Entry/Exit Barrier Threat of Substitutes HIGH: Low Switching Costs Bargaining Power of Suppliers Bargaining Power of Buyers Industry Competition Price Transparency Retailer

Industry Analysis Entry/Exit Barrier Threat of Substitutes High: No Price Competition Brand Image Bargaining Power of Suppliers Product Differentiation Bargaining Power of Buyers Global Competition + Local Taste and Culture Industry Competition

The Value Chain Research & Development (2. 6%) n n Sourcing Production Logistics (56. 4%) Brand Distribution Management & 　　　　　 Retail 　　　　　　　(13. 7%) R&D : Technology and Fashion Production: 100% Outsourced Brand : Positioned between Sport and Casual D&R : Carefully Selected Partners + Own Shops

Marketing Strategy Price Unpopular & Cheap in 80’s Different from Others Premium Price Product Micro Segmentation ØCameroon National team ØNiche sports: Cricket, F 1 ØNuala Promotion Channels: Ø Personalities Ø Sponsorships Ø Advertising

PUMA Faces

Value, Cost, & Speed n Value l Unique, Stylish and trendy products n Cost l Production outsourced n Speed l Catch new trend l Exploit new niches

What are Strengths of PUMA?

What are Strengths of PUMA? ØStrong Brand Awareness ØAppealing and Innovative Products ØInternational Management Team SW OT

What are Weaknesses of PUMA? ØStrong Brand Awareness ØAppealing and Innovative Products ØInternational Management Team ØHigh dependency on trends ØBig part of revenues come from Western Europe ØLess Financial muscles than SW OT Nike and Adidas

What are Opportunities of PUMA? ØStrong Brand Awareness ØAppealing and Innovative Products ØInternational Management Team ØHigh dependency on trends ØBig part of revenues come from Western Europe ØLess Financial muscles than SW OT Ø ROOM to exploit Lifestyle Market Ø MARKET for Accessories with High Margins ØNew Markets Nike and Adidas

What are Threats of PUMA? ØStrong Brand Awareness ØAppealing and Innovative Products ØInternational Management Team ØHigh dependency on trends ØBig part of revenues come from Western Europe ØLess Financial muscles than SW OT Ø ROOM to exploit Lifestyle Market Ø MARKET for Accessories with High Margins ØNew Markets Nike and Adidas ØSudden shift in tastes Ø Puma’s business depends on retailers

PUMA in Our Countries ØEurope: Large Market Penetration ØArgentina: License and Imports ØJapan: Removed License and New ØChina: Small Market Penetration Strateg

Keep on Running n Stay on The Same Track n Exploit better the Accessories and Apparel n Create New Brands for New Niches n Expand to Fashion Sensitive Countries